East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 09/12/2005, Docket: RP05-552-000, Status: Effective

First Revised Sheet No. 338 First Revised Sheet No. 338 : Effective

Superseding: Original Sheet No. 338





16.4 Remedies for nonpayment: Should Shipper fail to pay all of the

amount of any invoice as herein provided when such amount is due,

Shipper shall pay a Charge for Late Payment. Such Charge for Late

Payment shall be determined by multiplying (a) the unpaid portion

of the invoice, by (b) the ratio of the number of days from the

due date to the date of actual payment to 365, and by (c) the

interest rate determined in accordance with Section 154.501(d) of

the Commission's regulations. If such failure to pay continues

for thirty (30) days after payment is due and Transporter has

provided Shipper and the Commission with at least thirty (30) days

notice that service will terminate due to the non-payment,

Transporter, in addition to any other remedy it may have under the

service contract, may, after application to and authorization by

the Commission, if that authorization is necessary, terminate the

service agreement; provided, however, that if Shipper in good

faith shall dispute the amount of any such invoice or part thereof

and shall pay to Transporter such amounts as it concedes to be

correct in addition to providing such remittance detail and

documentation identifying the basis for the dispute, and at any

time within thirty (30) days after a demand made by Transporter

shall furnish good and sufficient security, as set forth in

Section 6.2 of these General Terms and Conditions, guaranteeing

payment to Transporter of the amount ultimately found due upon

such invoices after a final determination, which may be reached

either by agreement or judgment of the courts, as may be the case,

then Transporter shall not be entitled to terminate the service

agreement until default be made in the conditions of such bond.


16.5 Adjustment of underpayment, overpayment or error in billing: If

it shall be found within six months of the date the invoice was

rendered that a Shipper has been overcharged or undercharged in

any form whatsoever under the provisions of this FERC Gas Tariff

or the service agreement for the services for which the Shipper

was charged under such invoice and Shipper shall have actually

paid the invoices containing such overcharge or undercharge, then

within thirty (30) days after the final determination thereof,

which shall be no later than ninety (90) days from the date which

the claim for adjustment was made, Transporter shall refund the

amount of such overcharge and Shipper shall pay the amount of any

such undercharge; provided, however, if the overcharge or

undercharge is the result of a deliberate omission or

misrepresentation by either party or a mutual mistake of fact,

then the period for resolving adjustments is tolled until the

claimed adjustment is settled. Interest calculated in accord with

Section 16.4 above shall apply to any overcharge or undercharge

not paid or refunded within thirty (30) days from the date of the

determination of the amount of the undercharge or overcharge.


16.6 Nothing in these General Terms and Conditions or in any of

Transporter's Rate Schedules or service agreements is intended to

limit the rights of Transporter or Shipper with respect to

invoicing and payment or any other provision contained in either

the General Terms and Conditions, the Rate Schedules, or the

Service Agreements in fora outside the Federal Energy Regulatory